Minnesota Gives Tax Salutes To Its Military

One way Minnesota recognizes its military members and their service comes in their tax returns!

The state Department of Revenue decided that this month, which is National Military Appreciation Month would be a good time to recap the list of tax deductions and other courtesies available to Minnesota’s men and women in the Armed Forces. They often include Minnesota residents serving actively with regular forces, reserves or National Guard

You can look up a list of tax breaks at one Internet address. Minnesota Revenue’s military information page  is:  https://www.revenue.state.mn.us/individuals/individ_income/Pages/Members_of_the_Military.aspx

Here are a few to note:

  • Active duty military pay subtraction – Many taxpayers serving in the military can take pay for active duty off their Minnesota taxable income.  The subtraction extends even to re-enlistment bonuses and National Guard responses to emergencies.  
  • Tax credit for service in a combat zone — This tax break covers combat and hazardous duty pay for service after Jan. 1, 2015. The credit could amount to as much as $120 for each month in the hazardous zone, Minnesota Revenue says. Taxpayers also can make claims backwards for years 2016, 2017 and 2018, if they haven’t so far. The filing period for the year 2015 ends on Oct. 15, 2019. The taxpayer actually  applies for this credit separately from his/her normal income tax return, and, once approved, the credit is  refundable. That means the state pays it even if no more taxes are due.
  • Military pension subtraction – Veterans can cut pensions and some other types of military retirement pay from their Minnesota returns. (Those retirement payments must be taxable on the federal return.)  Or, going in another direction, veterans  who qualify, can take the state’s “Credit for Past Military Service.”  But they can’t take both at once, Minnesota Revenue says.

Minnesota offers several more items of tax relief to military, including extensions of times to file returns. A good wrap-up is found in a detailed fact sheet available at Minnesota Revenue’s Web site. Take a look: https://www.revenue.state.mn.us/individuals/individ_income/factsheets/fact_sheets_fs5a.pdf

Also, feel free to call on us at EricJohn Ltd. to keep up with Minnesota’s military tax benefits.

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